On Thursday 2 April, the European Commission presented a second set of amendments to Regulation 1303/2013 laying down common provisions to introduce a series of flexibilities and make the best use of unspent funds under the current multiannual financial framework to unblock up to €60 billion.
The Coronavirus Response Investment Initiative (CRII) introduces “exceptional additional flexibility”, welcomed Cohesion and Reform Commissioner Elisa Ferreira on her Twitter account, flourishing in another tweet the available amounts, potentially between €50-60 billion.
Five main principles, which we mentioned earlier (see EUROPE 12459/2), structure the Commission’s proposal: – the possibility of transferring unspent funds between cohesion policy funds (i.e., the Regional Development Fund, the European Social Fund and the Cohesion Fund); – the possibility of transfers between thematic concentrations; – the introduction of a series of administrative simplifications. Above all, the possibility of up to 100% co-financing and the politically sensitive measure of being able to make transfers between categories of regions, from the richest to the poorest regions and vice versa, are confirmed.
In terms of thematic concentration, today Member States are required to allocate certain minimum shares to EU priorities, including the low-carbon economy, research and innovation, and social inclusion. With these new measures, explains a senior Commission official, Member States are exempted from this obligation to allow resources to be redirected where they are needed.
As for 100% co-financing, this is an optional measure which may be requested for some or all of the current programmes applicable for the fiscal year 2020-2021.
With regard to transfers between categories of regions, while the European Commission provided for a ceiling limiting the transfer capacity of the least developed regions and regions in transition to 15% of the total amount of the budget allocated to them, the institution finally opted for the total abolition of the ceilings.
As regards administrative simplifications to facilitate procedures, it should be noted that the European Commission has opted for radical measures here, as well: no changes will be necessary to amend the partnership agreements. In addition, audit procedures will be simplified and the implementation reports for 2019 will be postponed, says the proposed regulation.
In the same spirit, in order to allow a rapid readjustment of the financial instruments, the review and updating of the ex ante evaluation and of the supporting documents demonstrating that the assistance provided has been used for the purposes intended should no longer be necessary.
These measures are in addition to the legislative amendments proposed on 13 March 2020 (see EUROPE 12449/2), which had been criticised because of their limitations, in particular not targeting the regions most affected by the pandemic, such as in Italy or Belgium (where it is the regions with the highest absorption rate that are most affected – see EUROPE 12456/1).
Fears. On the regions’ side, fears are emerging, including: why has the European Commission removed the 15% ceiling initially planned? This could have important implications for the least developed regions and regions in transition. Also, the fact that the partnership agreements are not amended in the interests of efficiency raises fears of a centralisation of procedures which could be a landmark for the future.
Amendments in view for the next multiannual financial framework. Asked by EUROPE, Marc Lemaître, Director General for Regional and Urban Policy (DG REGIO) confirmed that, in the framework of the recovery policy desired by the President of the European Commission, Ursula von der Leyen, the cohesion policy proposals for the next multiannual financial framework could be subject to amendments.
To view the proposal: https://bit.ly/2wN0a8z (Original version in French by Pascal Hansens)